Is a Debt Collector’s 24 Hour Deadline to Accept a Settlement Real?

My experience is when a collector is demanding you pay in 24 hours, they are using a collection pressure tactic. That said, it is possible they are set to lose the account back to the creditor, or that account is scheduled to migrate to a collection attorney soon. Debt placements do not generally last all that long, normally a few to several months.

I would not let an effort like this discourage you overly much. It is what it is, and you can afford what you can. If not today, you will likely have additional opportunities to settle.

The real risk in waiting

The problem in all of this is if you were sued before being able to fund the available offers. That does not mean you cannot settle when sued, or even before, when the account is placed with an in state attorney for collection. You can. But you will typically find you are negotiating for a much higher payoff than now. See negotiating credit card debt when you are being sued.

To provide a little more contrast, settling when a collection law firm has your account is likely to be between 60 and 90 percent of the balance. That would be triple the offer you shared is on the table today.

Should you ask the bank to coordinate both accounts?

You can try calling the bank to look into that level of coordination, asking it to take one reduced figure on both accounts at the same time. My experience suggests that will not lead to anything productive.

Calling the bank to ask about settling with them, or to cause them to call the collection agency you are dealing with in order to get the collector to change tact, is typically pointless. They are under contract with the collector until the time for the assignment runs out. Once in a while you can do something to cause the bank to recall the account. I would need to know more about your situation, other creditors you have besides Citibank, and your cash on hand now, and how much you will commit to the settlements monthly, before offering feedback on how to go about that.

Working the offer you have

A settlement at 35% of the balance with this bank is a good deal. If I had no shot at raising that amount of money across both accounts in the next few months, I would try to grind the collectors down once every few weeks, with an extra push in the last week of the month.

Over the years, I have often looked at ways to handle one account quickly while developing a longer range plan for others. That could mean paying 30 percent or so on one account today, then settling the other with a longer term payment arrangement (we often get up to a few years), or just saving up longer to do the other account. Getting one out of the way now at least cuts your risk of being sued in half.

A mailed offer with an expiration date works the same way, and I cover how to counter one in debt collectors send offers to settle in the mail. Whatever you agree to, get the terms in writing before you pay. See getting debt settlement letters and agreements before paying.

Anyone with questions about which accounts to lump sum and which to get spread out over time is welcome to post anonymously in the comments below for dedicated feedback.